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Cryptsonic Technologies Incorporated

Cryptsonic Technologies Incorporated

A Data-Object DRM Overlay Service

This company and others may be fundraising.

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Company Overview

Executive Summary

Cryptsonic Technologies Incorporated

Introduction


Cryptsonic Technologies Incorporated contributes to social development for the purpose of global distribution of digital content by providing a simple and secure method that enables users to take advantage of Internet distribution of media, yet still protecting the intellectual property belonging to companies, organizations and individuals.

In the exponential growth of the Internet, the files in various kinds of digital formats are freely and easily downloaded and distributed. However, those file exchanges are not always legally made. In particular, recent advancements in computer technology allow individuals to copy files that may infringe on copyright protected contents, and the industry is suffering from it. Digital piracy, which is illegal use of digital content, is a serious problem that online community is facing today. Annual losses in U.S. are $250 billion for entertainment and $3 billion for e-book industries.

Our mission is to eliminate those unauthorized uses of such content as e-books, videos and music, and offer a balanced and convenient content delivery platform to all participating stakeholders. We will be able to bring prosperity to future digital content businesses through making our technology an industry standard as we spread it among not only early adopters but also majorities and laggards of new technology.

The total sales outlook in minimum assumption with major partner companies of both hardware and software industries would be $581k for the first year, $4.4 million for the second and $57.6 million for the third.

The Company

The company was incorporated in 2017 in the state of Delaware. It is owned by Seiji Eto and his friends and family. He has extensive experience in software engineering worked at several top-notch companies in Silicon Valley. Dr. Rajesh Pendurkar, a design scientist and Georgia Tech PhD, has joined as a co-founder of the company. He has been a Sr. principal design scientist, engineering leader and a consultant in SOC Design field. He has over 18 years of R & D experience at Sun, Broadcom, Intel as well as a fabless semi-conductor startup RMI Corp. Dr. Rajesh Pendurkar is a senior member of the IEEE. Jim Jackson is a director - advisor for sales, marketing, and operations senior executive with strong global technology industry background spanning multiple functions. He is Chief Operating Officer at Virtuozzo and formerly Vice President, Worldwide Sales Operations at Parallels. Thomas Chow is also a director - advisor and seasoned executive in technology and legal services. He is General Counsel at Exponential Interactive, and formerly General Counsel at Vindicia and Acting General Counsel at TechSoup Global.

The company intends to hire one person as vice president of sales and marketing in charge of all business matters. Engineering activities will be mainly outsourced for the time being. Additional recruitments at later time will be under consideration depending on the situation.

Product and Service

We will solve the above mentioned piracy problem, providing a framework to stop unauthorized use of digital contents such as e-books, videos and music by implementing our newly-introduced Digital Rights Management (DRM) technology and its patent, #8,291,219, was granted by USPTO. Our technology allows both streaming and downloading for videos and music while most content providers are now hesitating to conduct the downloading activity which is the most promising revenue source because of a fear of piracy.

The following are our products and services to accomplish our mission:

  • First, we develop a movie portal prototype with a special reproducing device utilizing our DRM technology in software treatment and make profits from software IP licensing of our whole system.
  • Then, we design a special DRM chipset, which goes to every consumer device, and it is our final goal to make it accept as an industry standard. We will register its hardware IP and let the chip manufacturers use it via licensing. Those chipsets made by them will be embedded into end-users' reproducing devices such as PCs, smartphones, tablets and e-book readers.
  • Finally, we develop an integrated system including prototyping of a special reproducing device with which the above chipset is embedded to protect those copyright protected digital contents, and provide consultation to implement our technology for the companies who need it.

Because those authentication methods of our technology are capable of not only handling right-protected digital contents, but also making digital textbooks and utilizing e-books on the daily library operation. We also plan to go into the education field in the future.

The Market

Our product is an Internet digital content delivery system utilizing our patented technology through a cyber-physical approach, which can provide a perfect copyright protection for content holders, providers, electrical manufacturers who need to prevent the illegal use of digital content. We will design and develop both special hardware devices and software programs for that purpose.

As our potential customers are only the companies who want to implement a perfect DRM technology and are either new or existing, we are an OEM for them and our business deals are all B2B sale of products and services on a contract basis. Target customers are Netflix, Hulu and other companies who are conducting content delivery services and major chip manufacturers such as Intel, Texas Instruments, Toshiba, and NVIDIA. Revenue will come mainly from software and hardware licensing and consulting.

This technology can fit to all the digital contents without a fear of piracy. Therefore, the potential market losses from piracy will become soon to turn to gains.

Financial Considerations

We established our basic concept and its related assets by spending more than $250,000 (Pre-Seed and/or self funded). For this investment round, we need $800,000 (Seed) for the reproducing device prototyping and its sales and marketing activities. Then, we need at least $500,000 (Seed Plus/Series A) for chipset design and its IP establishment. The funds would come from financing rounds, not only equity issuance. We may require more funding in the future to expand our business across different products and verticals. As soon as the reproducing device prototyping is completed, we will start to offer our products to those customers as early as mid 2017. The chipset business will begin late 2017.

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